Tax time can be a pain for everyone. Add into the equation that you are also the owner of a small business and you may realize that you really have a lot on your plate. The best way for you to see success this coming tax season is by learning the most important tax deductions for your small business. To help you along your way to success, here are a few of the deductions that you absolutely need to know.
If you are self-employed, or work from home, then you are able to deduct costs related to your workspace. This deduction can be tricky, as you have to be precise in the way that you handle this. To make this deduction, the workspace that you use must be only used for work. This means that the computer you use cannot be used by anyone else in your household for any reason. Research deducting your home workspace to learn more about the proper way to go about this process.
Tax deductions come in all forms. Your supplies, everything from the paper you scribble on to the new charger you require for your laptop, can be deducted. This, of course, works in the same way that any standard subtraction works. You will need to have receipts, in the event of an audit, to back up each and every purchase that you are claiming is related to your work. Supplies are just the beginning, as you are also able write off furniture you purchase for the purpose of getting work done, software related to your industry and pretty much anything that you have to buy to get your work done. Remember to keep the receipts, or at least have a well-documented bank or credit card statement.
Do you travel for work at all? If so, you are able to deduct your mileage. As with your purchase receipts, you are going to want to keep track of all of your mileage. This can be tough, especially if you are not good at remembering to clock your miles each time you are behind the wheel. Get into the practice of recording your mileage, taking into consideration gas and tolls, and you will have a much better time writing off this expense at tax time.
The more you know about your possible tax deductions, the easier it is to save money for your small business. You need that cash to keep your business growing, so be a smart business owner and stay on top of your taxes.